The RSI Dots Signals Metatrader 5 is a modified standard RSI that can be deployed on any trading chart having a different timeframe.
The rules are the same as with the basic RSI technical indicator, asides the colored dots that show up within the indicator window.
The default period on the RSI Dots Signals MT5 forex indicator is 12, but this value can be tweaked.
The dots found within the indicator window switch colors relative to their bullish or bearish positions.
As such, if the values exceed 50, the dots are colored teal and blue violet, while for descending dots that are placed below the 50 level, their colors are Indian red and magenta.
The EUR/CAD H4 chart below displays the RSI Dots Signals Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the ascending dots (teal and blue violet) of the forex indicator hover above the 50 level.
Sell Signal: Go short when the descending dots (Indian red and magenta) of the forex indicator hover below the 50 level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the MT5 indicator parades a dot below the 50 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the MT5 indicator pops up a dot above the 50 level.
Tips: Scalpers, day traders and swing traders can benefit from this indicator.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Chart period, RSI period, Price constant, Repeat display of information in the empty bars), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator | trend
Copy and paste the colorrsi_htf.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)